Corporate Responsibility Reporting Criteria January 2018

Transcription

1 Corporate Responsibility Reporting Criteria 2017 January 2018

2 Contents Introduction... 3 General Principles... 3 Scope and boundaries... 3 Organisational boundary... 3 Reporting period... 4 Our Targets and KPIs... 4 Safe, secure world... 4 Thriving communities... 4 Sustainable future... 7 Quality Assurance of data... 9 Data estimation criteria... 9 Appendix 1: Organisational Scope

3 The Directors of RSA are and shall be responsible for Management s Statement and for reporting the CR data as at 07/02/2018 in accordance with the reporting criteria set out on the following pages. In doing so we have: - designed, implemented and maintained internal controls and processes over information relevant to the measurement and preparation of CR data that is free from material misstatement, whether due to fraud or error; - established objective reporting criteria for measuring and preparing the CR data and applied them consistently; - presented information, including the criteria, in a manner that provides relevant, reliable, comparable and understandable information; - measured and reported the CR data based on the reporting criteria. William McDonnell Group Chief Risk Officer On behalf of RSA Insurance Group 07/02/2017 Introduction This document outlines our approach to reporting on each of our Key Performance Indicators (KPIs) as disclosed in our Corporate Responsibility (CR) Report General Principles We report on those performance indicators that we have assessed as most material to our business through an assessment of both internal and external stakeholders. Please refer to the Our Issues section of the CR webpages. We aim to collect data that is as accurate and complete as practically possible. Where this is not achievable, assumptions or estimations are made according to the Data estimation. Consistent boundaries and methodologies are used wherever possible to allow comparison over time and across different businesses. Scope and boundaries Organisational boundary RSA Insurance Group plc ( RSA ) is a registered business in the UK with operations throughout the world. We report on our CR performance within an operational control boundary for all business processes where we can direct the financial and operating policies of with a view to gaining economic benefits from its activities. Within this boundary, we report on the performance of operations with 50 Full Time Equivalent (FTE) employees or more in any reporting year since our 2015 baseline. A full list of the sites included within our organizational boundary can be found in Appendix 1. Significant changes in the operational footprint of the business since 2015 has seen a few offices divested, as detailed below. Office Location FTE Date of closure/sale China Hong Kong India (Non- GCC) Singapore Italy Argentina /04/2016 Brazil /02/2016 Chile /04/2016 Colombia /03/2016 3

4 Mexico /05/2016 Uruguay /06/2016 Russia /01/2016 Quality Repair Centres (QRC) 329 Q Table 1: List of offices that have closed in the reporting period To take these changes into consideration, we report our CR data as follows: Environmental Data: Where an operation (country or office) falls in scope and has been exited by closure, environmental data will be included in the Group footprint up to the point of closure. If a site has been sold and is not material to the Group in the year of the sale, but remains in operation, just no longer within RSA s operational control; we will exclude all environmental data in all years. This is to remove the impact of emissions reductions achieved by selling part of our business to a third party, and ensures information disclosed allows for a fair comparison of environmental performance year on year. Community data: Where an operation (country or office) falls in scope and has been exited by sale or closure, community data will be excluded in the Group total for the full year, regardless of when operational control was relinquished. Reporting period All the figures in our report cover a 12-month period which corresponds to our financial year that is 1 st January 31 st December The process of measuring and reporting on our CR performance is detailed in our Community and Charity Policy and Environmental Policy which are applicable to all operations. Our Targets and KPIs Following a review of our targets in 2016, we updated them and our 2017 CR Report reports performance against these new targets. A description of these targets and KPIs are detailed under each section in the following pages. Safe, secure world Target KPIs Run at least one safety campaign every year in each core region we operate in. KPI 1: Number of safety campaigns run each year in each core region. KPI 2: Number of people reached by each campaign. KPI 1: Number of safety campaigns run each year in each core region. We define a safety campaign as any external or internal event or events organised and funded by RSA Group Companies for members of the public or RSA employees to promote safety in our everyday lives. A campaign does not need to be a sustained programme, a one-off activity can constitute a campaign. A campaign does not have to be concurrent; events, interventions and communications during the reporting period can constitute a safety campaign. Evidence will include photos from events, press coverage and internal communications. Details on campaigns are collated annually for the reporting period, coordinated through the Group CR team. We rely on the CR Representatives in each country to inform us of activities in this area and as such there may be activities taking place that are not reported to us. KPI 2: Number of people reached by each campaign. Where possible, we will collect information on the number of people impacted by the campaign. For example, number of attendees at an event, number of hits on a website, readership of newspaper that a campaign has been published in. Thriving communities Target Run a community programme in each core region we operate in that engages and develops our people, supports our local communities and makes a difference for our customers. KPIs KPI 1: Amount of community investment, including: Charitable spend Value of volunteering hours (and number of volunteering opportunities/hours) 4

5 Amount of employee funds raised for charity KPI 2: % of volunteering opportunities supporting employability skills or social enterprise. KPI 1: Amount of community investment ( sterling) Community investment includes direct financial support to registered charities, but can also include schools and universities and organisations with a charitable purpose, the value of our volunteering hours and employee raised funds. 1. Our financial support includes the following: Community spend: donations to support longer-term charitable partnerships or to support our CR focus areas of education, employability and social enterprise. For example, a donation to our partner charity School for Social Entrepreneurs or to support an employability skills workshop. One-off spend: one-off ad hoc donations made in response to a specific need or request for support. For example, donations to match the fundraising efforts of staff, to support their volunteering activities or donations to emergency appeals. Commercial activity spend: activity that is linked to our business and promotes the RSA brands or a product in partnership with a charity. For example, sponsorship of an event or payments to a charity based on the number of policies sold. The Group CR team and CR Representatives keep their own records of financial support to charities. At year end, financial reports are run in each country to cross check the financial support to charities. A final list of spend is reviewed in each country and submitted to the Group CR team. The Group CR team review all data centrally, supported by the CR updates from the CR Representatives. The Group CR team collate a final report which is reviewed by the Group Audit Committee. We rely on the CR Representatives in each country to inform us of financial support and as such there may be payments that are not reported to us. RSA use the Charities Aid Foundation (CAF) for all payroll giving. RSA provides CAF with an annual donation which is then donated directly to charities by CAF. The total annual donation to CAF may not all be spent in the year in which it was donated. 2. Value of volunteering hours ( sterling) (and number of volunteering hours) RSA encourages our people to volunteer and provides up to 2 days volunteering leave per year. We therefore report on the number of hours volunteered to support charitable and community activity during work hours and the value of that volunteering time to our business (based on the average hourly pay within each country that the volunteering took place). The CR teams and CR Representatives keep lists of volunteers and hours volunteered for each activity and report to the Group CR team on an annual basis. The Group CR team review all data centrally, supported by the quarterly CR updates provided by the CR Representatives, to provide a better understanding of the volunteering opportunities. Volunteering data is collected for all individuals working for RSA during the reporting period. We rely on the CR Representatives in each country to inform us of volunteering undertaken and as such there may be volunteering opportunities/hours that are not reported to us. 3. Employee funds raised for charity ( sterling) Employee raised includes RSA matched funding where scheme exists. RSA reports on the amount of money our people raise for charities and good causes each year. The data collected includes all money raised by our people that meet one or more of the following criteria: The individual/team raising the money has been supported by RSA with matched funding 1 1 Where our people have raised money as part of a team not made up of other RSA employees (individual claim) or where they have raised money as part of a team not made up of RSA employees (team claim), we will only include the amount raised which we have matched ( for up to 200 for an individual and 500 for a team). 5

6 The individual/team raising the money has been supported by RSA to take part in the fundraising activity (e.g. their place in a sponsored run has been funded by RSA) The individual/team is raising the money for a partner charity of RSA The fundraising activity is organised/supported by a group of RSA colleagues The fundraising activity has taken place during work time. The CR teams and CR Representatives record the amount of employee funds raised for charity and report to the Group CR team on an annual basis. The Group CR team review all data centrally, supported by the quarterly CR updates provided by the CR Representatives, to provide a better understanding of the fundraising activities. The majority of employee funds raised for charity has in the past taken place in the UK and further controls are in place; data is collected from each office and checked against the matched funding records to ensure that there is no double counting. Clear guidance for data collection and reporting is given to CR Representatives with the Group Community and Charity Policy. At RSA we are keen to support the fundraising efforts of our people and encourage them to support the causes close to their hearts. We provide matched funding, and in the UK we provide opportunities for them to share details of their fundraising activities through Yammer (an in-house social media site). KPI 2: The percentage of our volunteering opportunities supporting employability skills or social enterprise RSA reports on the number of volunteering opportunities (some individuals may have taken part in more than one activity) each year and in addition we report on the percentage of these opportunities that are supporting our CR focus areas of education and employability and social enterprise. We are keen to increase our skill sharing volunteering opportunities, so will be reporting on this development. The CR teams and CR Representatives keep lists of volunteering opportunities and organisations supported and report to the Group CR team on an annual basis. The Group CR team review all data centrally, supported by the quarterly CR updates provided by the CR Representatives, to record those that are supporting employability skills and social enterprise. Volunteering data is collected for all individuals working for RSA during the reporting period. We rely on the CR Representatives in each country to inform us of volunteering undertaken and as such there may be volunteering opportunities/hours that are not reported to us. Donations: This includes any direct financial support to registered charities including: Community spend: This is a longer-term investment in a project delivered by a charity or community group. Typically the project would last one year or more and would be delivering specified outputs and outcomes in the local community, e.g. a three year partnership with a local charity aiming to improve the education of local children. One-off spend: This is a short-term investment for a very specific need, for example, responding to an emergency appeal from a charity for a disaster, new roof for their building or a piece of equipment. This would not be a 'partnership', simply a donation to a local organisation where there is no long-term relationship. Commercial activity spend: This is an investment in an activity that promotes the RSA brand, a product or service in partnership with a charitable organisation, for example, cause related marketing. Employee Raised Donations: The data collected includes all money raised as part of company or staff-led activities. If an employee has applied for matched-funding, this can be considered as company-led activity. This excludes any donations staff make through Payroll giving. Employee raised includes RSA matched funding where scheme exists. Example: UK Sunderland offices employees run a fundraising event for MacMillan Cancer support. They raise 650. Match funding is applied for and the maximum of 500 is awarded. The total amount reported is therefore 1,150. The data collected includes all money raised by our people that meet one or more of the following criteria: The individual/team raising the money has been supported by RSA with matched funding 2 2 Where our people have raised money as part of a team not made up of other RSA employees (individual claim) or where they have raised money as part of a team not made up of RSA employees (team claim), we will only include the amount raised which we have matched ( for up to 200 for an individual and 500 for a team). 6

7 The individual/team raising the money has been supported by RSA to take part in the fundraising activity (e.g. their place in a sponsored run has been funded by RSA) The individual/team is raising the money for a partner charity of RSA The fundraising activity is organised/supported by a group of RSA colleagues The fundraising activity has taken place during work time. Volunteering: This includes the number of hours volunteered to support charitable and community activity during work hours and the value of that volunteering time to our business (based on the average hourly pay within each country that the volunteering took place). Time volunteered by RSA employees during work hours to support a charitable or community activity includes: Time away from day-job to support a charity with a task (e.g. gardening, fence building, woodland management, beach clean-up); Time away from day-job to share skills with local community (e.g. reading at a school, conducting an employability workshop, mentoring). Volunteering hours do not include preparation, set-up of a charitable activity or time spent fundraising this is already quantified in terms of the amount of money raised in employee raised donations. All volunteering must be approved by line managers and business impact must be managed accordingly. Gifts in Kind: This includes non-financial donations made by RSA employees or RSA Group to a registered charity (e.g. clothes, IT equipment, catering equipment, books, pencils, food and toys). The value of the donation is calculated by understanding how much the charity would pay for the item if they were to buy the same item second-hand from the open market. Sustainable future Targets KPI As we ve met our 2018 target of reducing our carbon KPI 1: Tonnes of carbon dioxide equivalent presented as emissions by 12% per employee from a 2015 baseline. We both actual emissions (tco2e) and emissions per employee aim to reduce our emissions by a further 4% from 2016 to (tco2e/fte) Deliver at least one awareness/support campaign each KPI 2: Number of awareness/support campaigns. year in each core region we operate to support our customers adapt to climate change and reduce their greenhouse gas emissions. KPI 1: Tonnes of carbon dioxide equivalent presented as both actual (tco2e) and per employee (tco2e/fte) We measure our environmental performance using a carbon footprint, including Scope 1, 2 and 3 emissions. Scope 1 includes emissions from RSA owned sources that are controlled by us, including natural gas consumption, diesel, liquid petroleum gas and company owned vehicles. Scope 2 includes emissions from the generation of purchased electricity, heating and steam and chilled water purchased from non-owned sources. Scope 3 includes all other emissions from non-owned sources that are related to RSA activities, including business travel, waste, and water and paper consumption. Business travel includes air, rail, hire cars, taxis, hotel nights and mileage from private cars used for business where data is available. Travel is recorded as kilometre (km) or miles travelled by a passenger and converted into CO2e. Air and rail travel data is collated from the central booking system managed by a third party supplier. Where countries do not have access to this system, flight and rail details are supplied directly from those travel agents or teams managing travel within the local organisation. Kilometres measured from car usage is collated via expenses systems within each business/country which reimburses employees on a cost per km travelled basis. Employees are encouraged to claim expenses in the month that the spend was incurred, however in some cases expenses are claimed a few months after the incurred spend. Therefore in some instances, expenses from 2016 may be included in the 2017 carbon footprint. Kilometres travelled combined with details of the vehicle type (diesel, petrol, alternative fuel) are used to convert data into CO2e. Where km data is not available, estimates are made using total spend on or litres of fuel. During the 2017 reporting period, we transitioned away from Our Impacts to a new platform; Envizi. The transition was completed on the 16 th of November, following transition and reconciliation of 2016, and the first half of 2017 numbers. Aggregate level checks were conducted on 2016 data to ensure consistency between the platforms. 7

8 The Envizi software is used to collect, measure, calculate and store all emissions data from raw value data detailed above. Data is entered with custom start and end dates, allowing our data owners to enter data in line with how it s received. We aim to collect as much data as possible throughout the reporting year, though certain items can only be collected in retrospect for the year. These are detailed in the table below; Custom intervals By Country By site/office Company owned vehicles Natural Gas/Electricity/District heating Annual (in Retrospect) By Country Business travel By site/office Paper Waste Water Table 2: Frequency of environmental data reporting Within each country, there is a CR Representative responsible for collecting and entering this data. The full list of sites is shown in Appendix 1. For each data value entered, evidence of the source of information is also uploaded on the system. Evidence includes invoices, supplier reports, expenses systems and travel agency data. Where evidence is unavailable or the office is in a multi-tenanted building, an explanation for the reason why there is no evidence is provided. Employee or headcount data is measured in Full Time Equivalent (FTE). One FTE is equivalent to one employee working full time. This data along with floor space numbers are collated on Envizi. This data is used to normalise our carbon footprint and enable us to report against our target. This data is also used, where required, for estimations. FTE data is inputted into Envizi by the CR Representatives in each country as when updates are identified. The CR Representatives obtain the FTE figures from the Facility Managers at each site or from the Human Resources team. If recent updates are unavailable, FTE data is assumed to remain approximately the same since the previous update. Average FTE is used for estimations and to report progress against our target. Envizi converts data into a carbon footprint with consideration to the World Business Council for Sustainable Development and World Resources Institute s (WBCSD/WRI) Greenhouse Gas Protocol; a Corporate Accounting Standard, together with the latest emissions factors from recognised public sources. These include, but are not limited to, the Department for Environment, Food and Rural Affairs (Defra), the International Energy Agency, the US Energy Information Association, the US Environmental Protection Agency and the Intergovernmental Panel on Climate Change. Changes in KPI1 reporting in 2016 and 2017 The emissions for have been calculated using a different organisational scope to previous years, reporting all sources of emissions from operations with 50 or more full time equivalent (FTE) employees. In previous years, emissions from offices with less than 50 employees were estimated, but these have been removed from the scope. In order to demonstrate a fair comparison between data year on year, any site that has recorded more than 50 FTEs in any reporting year since our 2015 baseline, has been considered in all years. Additionally, RSA has divested certain businesses previously within our operational control. Namely, Latin America and the sale of our Quality Repair Centres (QRCs) (accident repair garages). This process is in accordance with GHG protocol guidelines, and to present a fair year on year comparison, associated data has been removed from numbers previously disclosed and the present reporting year. KPI 2: Number of awareness/support campaigns. We define an awareness/support campaign as any external event or events organised and funded by RSA Group Companies for members of the public and RSA customers to encourage sustainable lifestyles and to promote resilience to extreme weather events. A campaign does not need to be a sustained programme, a one-off activity can constitute a campaign. A campaign does not have to be concurrent; events, interventions and communications during the reporting period can constitute an awareness/support campaign. 8

9 Evidence will include marketing material, webpages and internal communications (if applicable). Details on campaigns are collated annually for the reporting period, coordinated through the Group CR team. We rely on the CR Representatives in each country to inform us of activities in this area and as such there may be activities taking place that are not reported to us. Quality Assurance of data Once data has been entered into Envizi, a Quality Assurance (QA) process is carried out as described below. STEP 1: Data Entry process - CR Representatives enter consumption data value into relevant fields on Envizi - CR Representatives receive invoices or s from landlords with consumption data of each office. o Many of our offices are in multi-tenanted buildings where the landlord proportions the energy, water, waste consumption for each tenant. In these cases, it is almost impossible to get invoices. Some landlords provide a summary of environmental performance and others tie these costs into the monthly rental charges. - With each data value, evidence of the source of the value is uploaded. Evidence includes: o PDFs or scans of supplier invoices o s clearly from a third party supplier / landlord / building managers detailing data values and periods o Excel versions of supplier reports accompanied by a PDF or EML copy of the supplier s showing the file as an attachment o Spreadsheets showing meter readings from site manager or facility manager, where the spreadsheet will be accompanied by an EML copy of the site manager s . o Scanned copies of the supplier invoice / report, or the third party detailing the total building consumption values o An excel spreadsheet showing the apportionment calculations or an explanation of the calculations o within the comments section An excel spreadsheet showing the extrapolation of the data to cover the entire site or assessment period, or an explanation of the calculations within the comments section - Comments on the evidence provided and how the data has been collected are added. - Once the CR Representative has completed entering all their data, they save the data. This means that the data is ready for QA. STEP 2: Data Quality and supporting evidence check - Each quarter, there is a deadline for data entry. In 2017, an initial check was done on Q1 and Q2 data entered onto Our Impacts and then again on data uploaded onto Envizi to determine: o o Sites with missing data Sites with missing evidence - Missing data is requested from the CR Representatives. - Where sites have data and evidence, each data value is checked against the evidence provided to make sure that they match. o If data values are significantly higher/lower than previous years, queries are sent to the CR Representative. o If data values do not match the evidence, queries are sent to the CR Representative. - Once data values match evidence and most queries have been dealt with for a site, the Group CR team informs our support team that the site is ready for a high-level check. STEP 3: QA Process - We conduct a high-level comparison of data values against previously reported values. - Where data values differ significantly from previous values a more in-depth check is performed to reconcile data with the uploaded evidence. - Queries are initially sent to the Group CR team for explanations and then directed to CR Representatives if need be. - Data is either amended as per query or a comment is provided to explain the anomaly. Data estimation hierarchy Following our QA process, data is handed to our third-party consultants; Carbon Clear. They are responsible for conducting completion checks and, where necessary, conducting estimations. Carbon Clear estimate data per the following hierarchy of preference. Missing consumption values are calculated for sites according to the following hierarchy of preference. 1. Accrue actual data - In most instances, Q4 data was unavailable in time for yearend reporting. Envizi automatically estimates missing temporal information by multiplying typical consumption to date per day, 9

10 multiplied by the missing number of days. Missing data where actual data has been available in prior periods has also been estimated in this fashion. 2. Extrapolate data: Where we know data to be relevant, yet unattainable (e.g. electricity consumption in buildings where RSA receives an occupancy charge only) we extrapolate consumption. To do this, we determine an intensity per m2 or FTE at sites in a similar location and multiply expected consumption by the corresponding benchmark on site. The benchmark used (m2 or FTE) is dependent on the performance metric. We will prioritise the use of floor area to estimate onsite electricity and thermal energy, whereas we prioritise the use of FTEs to estimate missing travel mileage and water consumption. If the preferred data is unavailable, we will use the alternative of the two benchmarks. 3. Accrue Extrapolations: If there is insufficient actual data coverage in any given period (e.g. Q4 2017), extrapolations cannot occur. If this is the case, Envizi will automatically estimate for periods of missing data in a similar manner to part 1; determining a typical extrapolated consumption rate per day for the site, and multiplying by the number of missing days. END 10

11 APPENDIX 1: ORGANISATIONAL SCOPE Country Office locations 2016 FTE 2017 FTE Reason for variance UK and International RSA AR QRC RSA Hardgate Road - Glasgow Sold Q QRC RSA Triumph Close Sold Q Leeds QRC RSA Bentley Road Sold Q Walsall RSA UK Birmingham Relocation into new office RSA India (GCC) Ireland Western Europe Middle East Chelmsford Chipping Norton Fenchurch Street Glasgow Halifax Horsham Liverpool ,434 Manchester Peterborough Sunderland India RSA House Dublin Reduction in staff numbers (DUNDRUM) 123.ie, Galway Restructuring within the office Belfast Reduction in staff numbers Knocknacarra 148 New location as Ballybrit and Liosban offices have merged to this new location France Netherlands Spain Oman, Ruwi Saudi Arabia, Riyadh Increased centralisation from smaller offices to the Riyadh office UAE, Dubai Canada RSA RSA Canada - Calgary (Western Office) More efficient processes and centralisation to Sheridan office RSA Canada - CNS Vancouver Closure of a number of business lines RSA Canada - Dartmouth (Atlantic Office) RSA Canada - FCP Has replaced GCAN University RSA Canada - Head Office (York) RSA Canada - Montreal (McGill College Ave) RSA Canada - RTI Sherbrooke

12 Canada - Johnson Johnson (RSA Travel) RSA Canada - Sheridan Increased centralisation. Number of business lines have now moved to Sheridan. RSA Canada - UC Quebec City Office Corporate Head Office (Fort Increased centralisation, number of William Building) business lines have moved to the head office Richmond Hill Increased centralisation Edmonton Increased centralisation Halifax (CA) 83 0 Closed in June 2016, moved to Dartmouth (Atlantic Office) Scandi Denmark Denmark Codanhus Reduction in FTE Office Closures Denmark Aarhus Sweden Sweden Stockholm HQ Internal reorganisation and reduction in FTE Sweden Malmo (M10) Internal reorganisation Sweden Malmo (M12) Internal reorganisation Sweden Vaxjo Sweden Sundsvall Sweden Gotenburg Sweden Umeaa (D.19) Sweden Umeaa (K.16) Norway Norway Codan Oslo Hong /04/2015 Kong Singapore /04/2015 China /05/2015 India /07/2015 Italy /12/2015 Russia Moscow /01/2016 Brazil São Paulo /02/2016 Colombia Bogotá (Main Office & /03/2016 Branch) Argentina Capital Federal, Buenos Aires /04/2016 Chile Santiago Main Office /04/2016 Mexico Mexico City /05/2016 Uruguay Montevideo /06/2016 TOTAL 13,714 Data notes: FTE figures reported in this table are average FTE figures from Q1-Q